CHAPTER 375

FORMERLY

SENATE BILL NO. 388

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE MANUFACTURED HOME OWNERS AND COMMUNITY OWNERS ACT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend §7006(a)(10) by adding the following immediately after "notice;" at the end of paragraph 10:

"in addition, the summary must include the amount of rent charged for the lot for the 3 most recent past years. If the amounts are unknown after a diligent search or if the lot was not rented, a statement to that effect must be included. The rent history provided pursuant to this paragraph may not be used as a predictor of future rent increases, nor may it be used against the community owner/landlord in any way.".

Section 2. Amend §7010(b), Title 25 of the Delaware Code by inserting the phrase "in good faith" between "If a change is intended" and "in the use of land" at the beginning of subsection (b).

Section 3. Amend §7010, Title 25 of the Delaware Code by redesignating subsection (c) as subsection (d) and by adding to §7010 a new subsection (c) to read:

"(c) If a manufactured home community owner does not in good faith intend to change the land use of the community, yet provides a homeowner or tenant with a termination or nonrenewal notice pursuant to subsection (b) of this section, the community owner has committed the act of misrepresentation with intent to deceive the homeowner or tenant.

(1) A violation of this subsection is subject to the following civil penalties:

A. a cease and desist order;

B. payment of a monetary penalty of not more than $250 for each violation;

C. restitution;

D. such other relief as is reasonable and appropriate; and

E. double the monetary penalty if the homeowner or tenant is over 65 years old.

(2) Prima facie evidence that a community owner did not intend in good faith to change land use includes, but is not limited to, evidence that the community owner reused the land for lot rentals for manufactured homes within 7 years of providing a tenant with a termination or nonrenewal notice, and did not make a material and bonafide effort to change the subdivision plan or zoning designation, or both.

(3) A court may award attorneys fees and costs to a homeowner if it determines that the community owner violated this section.".

Section 4. Amend §7012(b), Title 25 of the Delaware Code by adding thereto a new paragraph (3) to read:

"(3) After notifying the manufactured home owners who are tenants in a community owner's manufactured home community that the community owner intends to change the land use or to convert the community pursuant to paragraph (2) of this subsection, if the community owner does not change the land use or convert the community within 3 years of notification, or if the Authority finds there is prima facie evidence under §7010(c)(2) that the owner did not intend in good faith to change land use, the community owner shall within 30 days of the date the Authority provides written notice to the community owner, reimburse the Authority for whatever monies the Authority has expended from the Trust Fund with respect to that manufactured home community, along with double the legal interest rate. The date of the mailing of notice by the Authority is deemed the date that a community owner is notified about reimbursing the Authority. However, if the community owner, with due diligence, has not been able to complete the change-in-use process within 3 years, the Authority may grant a reasonable extension to the community owner to complete the process.".

Approved July 6, 2006